ISBN: 9781264535248
Correct answers located at the end of the chapter.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) A commonly held misconception about marketing is that it is all about advertising and selling.
⊚ true
⊚ false
2) Marketing is relevant only to people in the organization who work directly in the marketing department.
⊚ true
⊚ false
3) The American Marketing Association defines marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
⊚ true
⊚ false
4) Peter Drucker stated that since it is the customer who defines value, the business enterprise has only two business functions: marketing and innovation.
⊚ true
⊚ false
5) Sustainability refers to business practices that reduce the overall cost of a product.
⊚ true
⊚ false
6) Firms focused on a production orientation mentality likely will have great difficulty competing successfully for customers.
⊚ true
⊚ false
7) When Henry Ford said, “People can have the Model T in any color—so long that it’s black,” he was reflecting a sales orientation.
true
false
8) Don Peppers and Martha Rogers popularized the term one-to-one marketing. Some firms come close to one-to-one marketing by combining flexible manufacturing with flexible marketing to enhance customer choices. ⊚ true ⊚ false
9) Fred Wiersema’s book The New Market Leaders states that marketers will continue to have more power than customers in both B2B and B2C markets. ⊚ true
false
10) In the current business environment, firms have learned to be open about products and services with consumers who have endless sources of information, including social media platforms, blogs, and independent websites.
⊚ true
⊚ false
11) Customer orientation, a component of market orientation, places the customer at the core of all aspects of the enterprise.
⊚ true
⊚ false
12) Marketing approaches should seek ways to decrease or discredit the vast amount of information accessible to consumers.
⊚ true
⊚ false
13) Millennial consumers, while much more receptive to digital marketing and e-commerce, tend to highly value in-person relationships with marketers like State Farm Insurance in much the same way as prior generations.
⊚ true
⊚ false
14) In contrast to Marketing (Big M), marketing (little m) serves the firm and its stakeholders at a functional or operational level.
⊚ true
⊚ false
15) Marketing (Big M) refers to the strategic, long-term, firm-level commitment to investing in marketing.
⊚ true
⊚ false
16) A customer orientation means ensuring the customer is the central core of all aspects of the business.
⊚ true
⊚ false
17) Strategic marketing refers to the idea that firms should direct energy and resources into establishing a learning relationship with each customer and connect the learned knowledge with the firm’s production and service capabilities.
⊚ true
⊚ false
18) Practicing marketers tend to pitch marketing internally as an expense, not an investment in the future success of the organization.
⊚ true
⊚ false
23) Which area of business is highly public and readily visible outside the confines of the internal business operation?
A) marketing
B) finance
C) manufacturing
D) operations management
E) human resource management
24) A misconception about marketing is that it is
A) relevant to everyone.
B) no more inherently unethical than other business areas.
C) all about selling.
D) highly visible by nature.
E) highly public.
25) Peter Drucker, the father of modern management, stated that the only purpose of an organization is to
A) create products.
B) make products affordable and accessible to the majority of the public.
C) improve the quality of life for all people.
D) create a customer.
E) make a profit.
26) Peter Drucker, the father of modern management, believed that marketing
A) should be a separate function within the business.
B) is the business as seen from an internal point of view.
C) is the whole business as seen from the customer’s point of view.
D) is not the central dimension of the entire business.
E) should be considered just as a “department” in an organization.
27) is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
A) Accounting
B) Marketing
C) Manufacturing
D) Finance
E) Economics
28) Socially aware companies such as Bombas, which donates clothing to homeless shelters with every item purchased, use such marketing efforts to focus on
A) reducing their marketing costs.
B) applying personal selling techniques.
C) increasing productivity.
D) engaging consumers in a meaningful way.
E) improving the bottom line.
29) From a customer’s perspective, what is defined as a ratio of the bundle of benefits a customer receives from an offering, compared to the costs incurred by the customer in acquiring that bundle of benefits?
A) exchange
B) strategy
C) sustainability
D) value
E) power
30) is a central tenet of marketing in which a person gives up something of value to them for something else they desire to have.
A) Power
B) Sustainability
C) Innovation
D) Customization
E) Exchange
31) Emmie notices her cellphone dies at least once a day, resulting in many missed messages and calls. After researching various options to resolve this problem, she spends $1,000 to purchase the latest model smartphone with a long-life battery. This is an example of
A) purpose-driven marketing.
B) an exchange.
C) a production orientation.
D) product differentiation.
E) one-to-one marketing.
32) A person living in the Middle Ages could not go to the cobbler and get a pair of shoes in a few minutes, or quickly purchase a standard-sized cloak from the local tailor. This period before the advent of marketing is known as the
A) Industrial Revolution.
B) mass production era.
C) relationship-orientation era.
D) pre–Industrial Revolution.
E) sales orientation era.
33) The AMA’s definition of marketing reflects the view toward marketing activities as focused on
A) producing innovative products.
B) increasing productivity.
C) maintaining relationships with suppliers.
D) creating and delivering offerings that have value.
E) advertising and selling.
34) After a lengthy strike, the union drivers went back to work, allowing deliveries of perishable dairy products to begin flowing from dairy processors to consumers once again. The union negotiated raises, a shorter workday, and a one-tier pay scale. The union may best be described as a(n)
A) governmental body.
B) stakeholder.
C) vendor.
D) customer.
E) management group.
35) Companies that promote sustainability practices like Patagonia, which pledges a percentage of sales to environmental restoration, are practicing________ marketing.
A) green
B) relationship
C) affiliate
D) viral
E) one-to-one
36) Max does the taxes for his friend’s auto shop and accepts car maintenance and repairs in payment. Max is practicing the central tenet of marketing called
A) value.
B) exchange.
C) growth.
D) sustainability.
E) power.
37) Which of these are core marketing concepts?
A) supply and demand
B) money and time
C) skill and expertise
D) quality and quantity
E) value and exchange
38) Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of the________ orientation.
A) production
B) selling
C) marketing
D) customer
E) relationship
39) The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of the________ orientation.
A) production
B) sales
C) marketing
D) customer
E) relationship
40) Why did production capacity utilization begin to decline around the end of World War I?
A) Firms that had dominated their respective industries before the war maintained their positions due to lack of competition.
B) High entry barriers prevented new companies from entering into the market place.
C) Financial markets placed more pressure on firms to continually increase sales volume and profits.
D) Financial markets were becoming less sophisticated.
E) Capacity had been decreased greatly for the war.
41) Companies that conduct a great deal of research to learn how they can successfully put the marketing concept into practice most likely have a________ orientation.
A) production
B) selling
C) market
D) research
E) differentiation
42) When was the marketing concept introduced?
A) after the Civil War
B) after World War I
C) during the Great Depression
D) in the 1980s
E) in the 1950s
43) The marketing concept was first articulated in the Annual Report of
A) Ford Motor Company.
B) AT&T.
C) RCA.
D) General Motors.
E) General Electric.
44) Making a change in any one of the marketing mix elements will
A) leave the other elements unchanged.
B) have a negative effect on a similar element.
C) also change the other elements.
D) require the firm to introduce new products.
E) require an increase in promotion.
45) After World War II, business began to change in many long-lasting ways. What is least likely to have caused this shift?
A) advent of readily available mainframe computing capability
B) opening up of production capacity dominated for years by war production
C) pent-up demand for consumer goods and services after the war
D) desperate need to regain a normalcy of day-to-day life after years of war
E) focus on sales orientation with the objective of achieving short-term profits
46) A cosmetics company develops an all-vegan skin care line which is organically sourced and has not been tested on animals. These products cost more, but appeal specifically to a socially conscious consumer. In this case, the company has adopted a________ orientation.
A) market
B) mass customization
C) differentiation
D) relationship
E) product
47) Diamond Property Management provides services to multiple condominium associations around town. Twice annually, the owners meet with each client company to discuss any issues and ways to improve their services. They send weekly emails with money-saving ideas and suggested maintenance schedules. The firm’s business practices mainly focus on keeping profitable current customers rather than gaining new clients. Diamond Property Management has adopted a________ orientation approach.
A) market
B) mass customization
C) differentiation
D) relationship
E) product
48) To significantly enhance customer choices, Nike combines flexible manufacturing with flexible marketing. Customers may visit the Nike website and order athletic shoes created especially for them. Nike has adopted a_______ orientation approach.
A) market
B) mass customization
C) differentiation
D) product
E) relationship
49) Many marketers today are more focused on________, or the bundles of benefits from an offering that solve a problem or fill a need of a customer, than they are on products.
A) customizations
B) returns on investments
C) solutions
D) stakeholder returns
E) promotion
50) The concept of engaging in a learning relationship with customers and directing the firm’s resources to making each product or service as customized as possible is known as
A) market orientation.
B) pro-social marketing.
C) differentiation orientation.
D) one-to-one marketing.
E) relationship orientation.
51) In the context of the 4Ps of the marketing mix, high-tech media options like cell phones and the internet have had a huge impact on
A) product.
B) promotion.
C) people.
D) position.
E) price.
52) A small financial planning firm works hard to keep and cultivate profitable current customers instead of constantly investing in gaining new customers that come with unknown return on investment. This company has a________ orientation.
A) sales
B) differentiation
C) market
D) production
E) relationship
53) Relationship-oriented firms tend to
A) be driven by meeting a quarter’s financial projections.
B) keep and cultivate their profitable current customers who are highly satisfied with the firm’s offering.
C) constantly invest in new customers that come with unknown return on investment.
D) pour significant resources into innovative product development.
E) focus primarily on increasing sales through catchy and entertaining advertisements.
54) Customer relationship management (CRM) is designed primarily to
A) assess the personality characteristics of target customers.
B) identify profitable customers in new markets.
C) position products to serve very specific customer groups.
D) clearly distinguish a firm’s products from those of competitors in the minds of customers.
E) facilitate higher levels of customer satisfaction.
55) A major hotel chain keeps an in-house database of its customers, their travel history, and their preferences so it can better meet customers’ needs and gain their loyalty. This demonstrates the use of
A) one-to-one marketing.
B) customer relationship management.
C) differentiation orientation.
D) sales orientation.
E) exchange.
56) Today customers have limitless access to facts about companies, products, competitors, other customers, and even detailed elements of marketing plans and strategies. In the context of marketing change drivers, this reflects the shift
A) in information power from marketer to customer.
B) to demanding return on marketing investment.
C) in generational values and preferences.
D) to distinguishing Marketing (Big M) from marketing (little m).
E) to product glut and customer shortage.
57) Online car retailer Carvana lets consumers shop for a car online, and arrange for financing without meeting directly with a salesperson. In the context of change drivers impacting the future of marketing, this reflects the shift
A) to product glut and customer shortage.
B) in power from marketer to customer.
C) in generational values and preferences.
D) to distinguishing Marketing (Big M) from marketing (little m).
E) to justifying the relevance and payback of the marketing investment.
58) McDonald’s now offers a selection of interactive games and augmented reality in its Happy Meal App for kids, and has forsaken hard plastic toys in Happy Meals for sustainable paperbased ones. In the context of change drivers impacting the future of marketing, this reflects the
A) shift to product glut and customer shortage.
B) shift in information power from marketer to customer.
C) shift in generational values and preferences.
D) shift to distinguishing Marketing (Big M) from marketing (little m).
E) shift to justifying the relevance and payback of the marketing investment.
59) In the context of change drivers impacting the future of marketing, the way a firm looks at strategy and tactics is reflected in the shift
A) to product glut and customer shortage.
B) in power from marketer to customer.
C) in generational values and preferences.
D) to distinguishing Marketing (Big M) from marketing (little m).
E) to justifying the relevance and payback of the marketing investment.
60) In the context of change drivers impacting the future of marketing, marketing tactics such as designing the elements of the marketing mix are reflected in the shift
A) to product glut and customer shortage.
B) in power from marketer to customer.
C) in generational values and preferences.
D) to distinguishing Marketing (Big M) from marketing (little m).
E) to justifying the relevance and payback of the marketing investment.
61) The 4Ps of marketing refer to
A) product, price, place, and promotion.
B) policy, production, plan, and preference.
C) promotion, plan, place, and procedure.
D) price, policy, program, and position.
E) place, production, provision, and plan.
62) An offering today is considered to be the________ in the marketing mix.
A) product
B) price
C) promotion
D) place
E) policy
63) Supply chain management is considered to be part of the________ of the marketing mix.
A) product
B) price
C) promotion
D) place
E) plan
64) In the context of the marketing mix,________ today is largely regarded in relationship to the concept of value.
A) product
B) price
C) promotion
D) place
E) policy
65) Austin’s mobile dog grooming business works around the needs of the customer by providing hours of operation that vary throughout the week, including some evening and weekend hours. It could be said that Austin’s business is
A) differentiated.
B) customer-centric.
C) market-oriented.
D) product-oriented.
E) socially responsible.
66) What clearly distinguishes your product from those of the competition is
A) orientation.
B) differentiation.
C) organization.
D) relationships.
E) development.
67) In Wiersema’s book, The New Market Leaders, he identifies six new market realities. Which of these is included in the list?
A) competitors fade away
B) few secrets are open secrets
C) innovation is universal
D) information remains stable
E) hard times make easy growth
68) Which characteristic about millennials is the least accurate?
A) They favor content over authenticity.
B) They are brand loyal.
C) They are highly connected through technology.
D) They wish to be part of a company’s development process.
E) They seek ethical companies to work for.
69) As of 2024, which generational segment is the largest in the United States?
A) Baby Boomers
B) Gen Alpha
C) Gen X
D) millennials
E) Gen Z
70) Lisette just took a new position in marketing. She chose this job because it gives her a varied and flexible schedule with little overtime, and the company is well-known for being socially responsible. Her parents, in contrast, have always worked for companies that paid generously, but required long regular hours and a structured work schedule. This demonstrates how shifts in ________ can influence work life versus family life.
A) generational values and preferences
B) information power from marketer to customer
C) product glut and customer shortage
D) buying power from customer to marketer
E) competitive influences
71) Marketing (Big M) is also known as________ marketing.
A) pro-social
B) tactical
C) strategic
D) green
E) operational
72) In the context of marketing change drivers, marketing (little m) is also known as________ marketing.
A) pro-social
B) tactical
C) strategic
D) viral
E) sustainable
73) Which action element is required for successful Marketing (Big M)?
A) aligning all internal organizational processes and systems around the product
B) ensuring that everyone in an organization understands the concept of customer orientation
C) finding somebody at the lower level of the firm to consistently champion this Marketing (Big M) business philosophy
D) remembering that the marketing department is where Marketing (Big M) takes place
E) creating market-driven, not market-driving, strategies
74) Strategic marketing refers, in part, to
A) a firm’s internal focus on production and customer satisfaction.
B) working to improve the operational level of a firm.
C) a long-term, firm-level commitment to investing in marketing.
D) making an unwavering commitment to maintaining the existing target market.
E) studying promotion, distribution, delivery, and production.
75) The core marketing concept characteristics of an organization-wide customer orientation and long-run profits are________ in nature.
A) objective
B) strategic
C) ethical
D) operational
E) functional
76) refers to approaches that drive the market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before.
A) Green marketing
B) Tactical marketing
C) Market creation
D) Market orientation
E) Marketing analytics
77) In 2000, Samsung manufactured the first cell phone with a built-in camera. Before that, people just used their cell phones to make and receive calls. Samsung fulfilled a need that consumers didn’t know they had through
A) green marketing.
B) tactical marketing.
C) market creation.
D) market orientation.
E) viral marketing.
78) For successful Marketing (Big M), customer orientation must be understood by
A) an organization’s competitors.
B) the top management only.
C) an organization’s suppliers.
D) the existing customers.
E) everyone in the organization.
79) For successful Marketing (Big M), all internal organizational practices should be aligned around
A) profits.
B) management.
C) manufacturing.
D) the customer.
E) information technology.
80) In order for Marketing (Big M) to succeed, it must be championed by
A) the sales force.
B) top management.
C) middle management.
D) frontline personnel.
E) the marketing team.
81) A small business spent a large amount of time determining its brand image and how it would deliver its message to its customers. These are elements of
A) Marketing (Big M).
B) marketing (little m).
C) strategic marketing.
D) the supply chain.
E) stakeholder relations.
82) In order for Marketing (Big M) to succeed, firms should create________ strategies.
A) predatory pricing
B) market-driving
C) diversification
D) evergreen
E) market-driven
83) In the context of change drivers impacting the future of marketing, marketing (little m)
A) is often thought of as strategic marketing.
B) almost always takes place at the top level of a firm.
C) serves as a core driver of business strategy.
D) need not be couched within the philosophy of a firm’s Marketing (Big M).
E) serves the firm and its stakeholders at a functional level.
84) Microsoft’s revolution of the information field and Disney’s creation of the modern theme park industry are classic examples of
A) marketing mix.
B) marketing (little m).
C) pro-social marketing.
D) green marketing.
E) market creation.
85) Everything from brand image to the message sales people and advertisements deliver to customer service to packaging and product features to the chosen distribution channel exemplify
A) strategic marketing.
B) relationship orientation.
C) Marketing (Big M).
D) sales orientation.
E) marketing (little m).
86) Appropriate and effective marketing metrics must be designed to identify, track, evaluate, and provide key benchmarks for improvement. In the context of marketing change drivers, this reflects the shift
A) to justifying the relevance and payback of the marketing investment.
B) to product glut and customer shortage.
C) to distinguishing Marketing (“Big M”) from marketing (“little m”).
D) in generational values and preferences.
E) in information power from marketer to customer.
87) Management asked Fumiko to identify, track, evaluate, and provide key benchmarks for improvement in her marketing department. To do this, Fumiko used
A) marketing metrics.
B) market research.
C) the marketing mix.
D) market creation.
E) strategic marketing.
88) When the text states that marketers need to create tools for ongoing, meaningful measurement of marketing productivity, it is referring to the need for
A) accountability.
B) innovation.
C) diversification.
D) visibility.
E) identification.
89) Joaquin’s job is to measure, manage, and analyze marketing performance to optimize the firm’s return on marketing investment. Joaquin is practicing
A) financial metrics.
B) marketing analytics.
C) economic analysis.
D) marketing metrics.
E) budget analysis.
90) Which of these is a macro-level environmental trend in business that affects marketing?
A) a shift to digital and social media approaches to marketing communication
B) the emphasis on internal stakeholders
C) CEOs being held more responsible for assessing marketing productivity
D) the view of marketing as an investment instead of a cost
E) the quantification of marketing objectives and results
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
91) Name three of the marketing misconceptions discussed in the text, and explain why these do not accurately describe the field of marketing.
92) How do you define the term marketing? How does the AMA definition compare with Drucker’s definition?
93) Compare and contrast the production orientation, the sales orientation, the differentiation orientation, the market orientation, and the relationship orientation.
94) Describe three ways in which information power has shifted from the marketer to the customer.
Answer Key Test name: Chapter 01
C
D
C
B
D
D
E
B
D
D
B
A
B
E
38) A
39) B
40) C
41) C
42) E
43) E
44) C
45) E
46) C
47) D
48) B
49) C
50) D 51) B 52) E
53) B 54) E 55) B 56) A 57) C 58) C 59) D 60) D 61) A 62) A 63) D 64) B 65) B 66) B
67) C 68) A
69) D
70) A
71) C
72) B
73) B
74) C
75) B
76) C
77) C
78) E
79) D
80) B
81) B
82) B
83) E
84) E
85) E
86) A
87) A
88) A
89) B
90) A
91) Short Answer
92) Short Answer
93) Short Answer
94) Short Answer